FSS Begins Inspection of MBK-Affiliated Investment Advisory Firm
The Financial Supervisory Service (FSS), which is conducting comprehensive inspections and investigations related to the so-called Homeplus incident, has also launched an inspection against MBK Partners Special Situations (MBKP SS), an investment advisory firm under MBK Partners.
According to the office of Kim Hyun-jung, a member of the National Assembly's Political Affairs Committee from the Democratic Party of Korea, and the FSS, the FSS began inspecting MBKP SS on the 1st of this month. MBKP SS is a 100% subsidiary of MBK Partners' Hong Kong corporation. It was the entity that led the public tender offer for Korea & Company in 2023.
The FSS plans to examine the connection between MBKP SS and MBK Partners in relation to the prosecution investigation into MBKP SS and employees of the law firm Kwangjang for allegedly using undisclosed information during the 2023 Korea & Company public tender offer. The Financial Services Commission's Securities and Futures Commission filed complaints in January against one MBK SS employee and three Kwangjang employees for violating the prohibition on the use of material non-public information, and the Seoul Southern District Prosecutors' Office conducted a search and seizure of Kwangjang's offices last month.
An FSS official stated, "Since the inspection of MBK Partners is already underway, we will look into whether MBK Partners was involved in the use of undisclosed information by MBKP SS."
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Meanwhile, due to this inspection, the review of MBKP SS's application for the cancellation of its investment advisory business license is expected to be suspended. MBKP SS applied to the financial authorities last month to cancel its investment advisory business license, claiming that a domestic investment advisory license was no longer required. In response to a lawmaker's inquiry about measures if an investment advisory firm under inspection returns its license, the FSS replied, "The financial authorities may suspend the review if the nature of the inspection and other factors suggest that the inspection results are likely to have a significant impact on the review."Within the industry, there is also a view that MBKP SS attempted to return its license to avoid the FSS inspection.
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